Deposit Invoice Template
Never carry all the risk to the end of a job. A deposit invoice funds your early costs and confirms the customer is serious.
What's included
- Request a deposit in a way the customer can act on immediately
- Show how the deposit will be applied to the final invoice
- Decide a deposit percentage that fits the job's risk
- Keep the GST treatment of a deposit correct
- Link the deposit to a clear start trigger
6 min read
Why this template matters
For larger or longer jobs, payment up front is your single best protection. A deposit confirms the customer's commitment, funds the materials and time you spend before any progress claim, and filters out the buyer who was never really going to proceed. Asking for it is not pushy — it is standard commercial practice across trades and services.
A dedicated deposit invoice makes the request concrete and easy to pay. It also sets the expectation early that this is a paid relationship with terms, not a favour. The job starting on receipt of the deposit gives you a clean, unarguable trigger and keeps your exposure low from the first day.
The template
DEPOSIT INVOICE [Your trading name] ABN: [11 22 333 444] Bill to: [Customer name] Invoice number: INV-0007-DEP Issue date: 14 March 2026 Due date: 21 March 2026 Quote ref: Q-0042 ------------------------------------------------------------ Description Amount (AUD) ------------------------------------------------------------ Deposit — 30% of accepted quote Q-0042 3,000.00 (Total quote: $10,000 inc GST) ------------------------------------------------------------ Subtotal (ex GST) 2,727.27 GST (10%) 272.73 TOTAL DEPOSIT (inc GST) 3,000.00 ------------------------------------------------------------ Work commences on receipt of this deposit. This deposit is applied to your final invoice. Pay by EFT: BSB 000-000 Acc 00000000 Ref: INV-0007-DEP
How to use it
Tie the deposit to an accepted quote so the percentage is obviously fair and the customer can see the full picture. State two things in plain language: that work commences on receipt, and that the deposit is applied to the final invoice. The second line reassures the customer it is not an extra charge, just an early instalment of the total.
Size the deposit to the risk. A 10% deposit barely covers a query; 30–50% is common where you buy materials or commit time before billing again. Model the milestone structure first with the milestone billing schedule so the deposit and later claims add up cleanly to the quoted total.
Getting the GST right
If you are GST-registered, a deposit that forms part of the price for a taxable supply generally has GST applied, and this template shows it that way. The deposit's GST is then accounted for as part of the overall job rather than charged twice. Edge cases — security deposits that are refundable, or deposits that are forfeited — can be treated differently, so this is general information only.
For anything other than a straightforward part-payment deposit, confirm the GST timing and treatment with the ATO or your accountant. The safe default for a normal job deposit is to treat it as a taxable instalment and reconcile it against the final tax invoice so the customer's GST credits remain correct.
Tips
- Tie the deposit to an accepted quote so the amount is clearly fair.
- State that work starts on receipt and the deposit applies to the final invoice.
- Size the deposit to your real up-front exposure, not a token figure.
- Reconcile the deposit against the final tax invoice to keep GST clean.
FAQ
How big should a deposit be?
It depends on your up-front costs and risk. 10% signals commitment; 30–50% is common where you outlay materials or time before the next claim. Match it to what you spend before billing again.
Is GST charged on a deposit?
For a normal deposit that forms part of the price of a taxable supply, GST generally applies if you are registered. Refundable security deposits can differ — check specifics with the ATO or your accountant.
What if the customer cancels after paying a deposit?
That depends entirely on your agreed terms. Spell out in your quote whether a deposit is refundable, partly refundable, or forfeited, so there is no dispute later.
Templates are a head start — not legal advice
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